A projected excess cash balance for the month may be ________.

Question

Quizplus · Accepted Answer

A projected excess cash balance for the month can be invested in marketable securities, such as treasury bills or commercial paper, to earn a return while maintaining liquidity. Financing with short-term or long-term securities may not be necessary if the excess cash can be invested in marketable securities. Investing in long-term securities may not be preferred as they are less liquid and may have higher risks.

A Projected Excess Cash Balance for the Month May Be